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How does space affect the allocation of the EU rural development policy's expenditure? An econometric assessment


  • Beatrice CAMAIONI

    (INEA (National Institute for Agricultural Economics), Rome - Italy)

  • Roberto ESPOSTI

    (Universit… Politecnica delle Marche, Dipartimento di Scienze Economiche e Sociali)

  • Francesco PAGLIACCI

    (Universit… Politecnica delle Marche, Dipartimento di Scienze Economiche e Sociali)

  • Franco SOTTE

    (Universit… Politecnica delle Marche, Dipartimento di Scienze Economiche e Sociali)


This paper focuses on the main drivers of the distribution of the Rural Development Policy's expenditure throughout the EU. Ex-post funds distribution across EU NUTS3 regions is considered. Three effects are admitted as major drivers: the "country effect"; the "rural effect" (i.e., the more rural a region the larger the amount of support it is expected to receive); the "pure spatial effect" (i.e. the influence of bordering regions and, in particular, of their degree of rurality). These effects are estimated adopting alternative spatial model specifications: spatial Durbin model, SEM and SAR model. Results differ across alternative specifications and definitions of rurality, but the prevalent evidence suggests that rurality matters in a counterintuitive direction, while also neighbouring regions play a role.

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  • Beatrice CAMAIONI & Roberto ESPOSTI & Francesco PAGLIACCI & Franco SOTTE, 2014. "How does space affect the allocation of the EU rural development policy's expenditure? An econometric assessment," Working Papers 399, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
  • Handle: RePEc:anc:wpaper:399

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    References listed on IDEAS

    1. Bernard Fingleton, 2004. "Regional Economic Growth and Convergence: Insights from a Spatial Econometric Perspective," Advances in Spatial Science, in: Luc Anselin & Raymond J. G. M. Florax & Sergio J. Rey (ed.), Advances in Spatial Econometrics, chapter 19, pages 397-432, Springer.
    2. Anselin, Luc & Bera, Anil K. & Florax, Raymond & Yoon, Mann J., 1996. "Simple diagnostic tests for spatial dependence," Regional Science and Urban Economics, Elsevier, vol. 26(1), pages 77-104, February.
    3. Riccardo Crescenzi & Fabrizio De Filippis & Fabio Pierangeli, 2015. "In Tandem for Cohesion? Synergies and Conflicts between Regional and Agricultural Policies of the European Union," Regional Studies, Taylor & Francis Journals, vol. 49(4), pages 681-704, April.
    4. J. Elhorst, 2010. "Applied Spatial Econometrics: Raising the Bar," Spatial Economic Analysis, Taylor & Francis Journals, vol. 5(1), pages 9-28.
    5. Camaioni, Beatrice & Esposti, Roberto & Lobianco, Antonello & Pagliacci, Francesco & Sotte, Franco, 2013. "How rural is the EU RDP? An analysis through spatial fund allocation," Bio-based and Applied Economics Journal, Italian Association of Agricultural and Applied Economics (AIEAA), vol. 2(3), pages 1-24, December.
    6. James P. Lesage, 2008. "An Introduction to Spatial Econometrics," Revue d'économie industrielle, De Boeck Université, vol. 0(3), pages 19-44.
    7. Paola Bertolini & Marco Montanari, 2009. "Un approccio territoriale al tema della povertà in Europa: dimensione rurale e urbana," Economia & lavoro, Carocci editore, issue 1, pages 1-27.
    8. Esposti, R. & Pagliacci, F. & Sotte, F. & Camaioni, Beatrice & Lobianco, A., 2013. "How rural the EU RDP is? An analysis through spatial funds allocation," 2013 Second Congress, June 6-7, 2013, Parma, Italy 149900, Italian Association of Agricultural and Applied Economics (AIEAA).
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